Discussion of “Scheduling of spinning reserve considering customer choice on reliability”

The authors proposed a market model in which the energy and spinning reserve are cleared sequentially. The experience has shown that this kind of market model can lead to quite undesirable situations such as price reversal problem. The case of the pre-2001 California electricity market is the best example. Moreover, by using sequential market clearing, enough capacity may not be brought into the reserve market. As a result, post clearing market ad hoc manipulations would be required to turn on enough extra units to meet reliability targets. Lastly, ignoring the coupling that exists between the energy and the reserve scheduling can lead to suboptimal or infeasible results.